Andorra and San Marino formally signed association agreements with the European Union on Monday in Brussels, opening the path to participation in the bloc's single market under terms comparable to those of Norway, Iceland, and Liechtenstein.

The deals, signed by Andorra's head of government Xavier Espot and San Marino's foreign minister Luca Beccari alongside EU commissioners Maroš Šefčovič and Valdis Dombrovskis, extend the four freedoms of goods, services, capital, and people to the two countries. They replace existing customs unions and establish frameworks for cooperation in areas such as research, education, and the environment.

Neither nation will join the European Union or the Schengen area. Andorra will retain its border controls and fiscal sovereignty, including tax advantages for its residents. Transitional periods protect sensitive sectors, with 30 years for tobacco, 15 years for financial services, and seven years for telecommunications. Mobile roaming charges are set to end after seven years once quality standards are met.

The agreements follow negotiations that began in 2014 and concluded in 2023 after Monaco withdrew. The EU Council authorized signature and provisional application in July following the resolution of prior hurdles. The European Parliament must now grant consent before ratification proceeds.

In Andorra, a consultative referendum expected early next year will give citizens the final say, with the result considered politically binding. San Marino requires no such vote. The pacts mark a significant step in integrating the microstates economically without compromising their independence or requiring full EU membership.

EU officials described the deals as among the most ambitious offered to external partners, delivering legal certainty and new opportunities for citizens and businesses while safeguarding the integrity of the single market.